Posts Tagged ‘los angeles chapter 13’

“But won’t bankruptcy destroy my credit?!” We have heard it time and time again and are sure you have had that thought once or twice, especially if you are contemplating filing. The truth is bankruptcy actually acts as a repair for your credit.

Think about it, if you are having thoughts of filing bankruptcy, you probably aren’t in the best of financial situations at the moment anyways. The piling of bills and never ending debt aren’t looking so good on your credit report. If you’re trying to repair your credit score without bankruptcy, it may be like trying to swim up a white water rapid. No matter how hard you swim, the waves are too strong and will only push you back.

All of your bills and large amount of debt will keep pushing you back from achieving the credit score you want. Instead of fighting the rapids, you should think of exiting the river and walking up the stream.

With Bankruptcy, you discharge all of your stressful debt and are given a fresh start. Yes, your credit score will decrease when you initially file, but think of how easy it will be to reestablish an excellent credit score without having all of the baggage on you. You can walk up that river with ease; nothing will push or hold you back.

You can achieve that credit score you once had or always dreamed of once you rid yourself of everything that is holding you back and keeping you from what you financially desire.

Here is how it works: years ago, when home values were at their height, home owners used the equity in their home(s) to borrow against. They took out second mortgages, third mortgages, and even fourth mortgages. Those mortgages were secured by the equity in the home. But today, one in four California homeowners is upside down (where the liens against a property exceed the value of the property). In many cases, debtors can completely eliminate junior liens either in a Chapter 13 or Chapter 11 Bankruptcy!

For most individuals and families, eliminating their junior mortgages and creating an affordable three to five year repayment plan on their debt is better than anything possibly achieved through a loan modification. Consumers are able to get caught up on delinquent mortgage payments and eliminate their junior mortgages upon the completion of their Chapter 11 or 13 plan. Consumers then walk away from their plan, free of all unsecured debts and their second mortgages in some cases. It truly represents a fresh start.

The great news is that by using this plan, it is possible to stay in your home while paying only a percentage of your unsecured debt even though you may be making less than you did several years ago.

The only shame is that most people who qualify for this type of bankruptcy don’t even know it exists!

Financial concerns are the leading cause of stress in America. In addition to being downright un-fun, financial stress causes a gamut of negative consequences including sleeplessness, anxiety, frustration, depression and hopelessness, affecting every aspect of our lives, especially work and family.

Unhealthy Americans make for an unhealthy America, both physically and financially. Compare the cost of a healthy lifestyle to the ramifications of major illnesses. Finances follow suit. If eliminating toxic debt can restore financial health to the individual, and collectively to the nation, then filing bankruptcy actually becomes an act of patriotism, and nothing to be ashamed of.

If you were suffering from a life-threatening disease, you would find the best, most experienced physician available. For your financial health, there is Doan Law Firm, considered among the best in the nation, having helped more than 25,000 people remove their toxic debt and renew their financial health.

Healthy families make up a healthy, productive society and bankruptcy can be an essential element of that equation. Doan Law Firm is California’s Largest Family of Attorneys and helps families every day improve their financial health.

For the bulk of people contemplating bankruptcy, their credit has already been severely damaged. Each creditor reporting negatively every month takes a heavy toll on a credit score. For clients whose credit score is still standing, they’ve been engaging in expensive juggling that takes a personal toll.

Bankruptcy stops the constant negative reporting so the positive ones can take an effect. So while it has a dramatic effect, it allows credit to recover.

Once your bankruptcy is discharged, you will immediately be offered low balance secured credit cards. Using those cards will begin to rack up positive points on your credit. Also helpful are payments on any house or car you keep through bankruptcy.

After bankruptcy your credit will recover and build much more quickly than when you were just starting out. FHA regulations permit lending two years after a bankruptcy. With very little effort, your credit will recover quickly.

Bankruptcy contains a little bit of magic in the form of a second mortgage lien strip. If you qualify, the bankruptcy laws allow you to keep your home with just the first mortgage. The second mortgage payment hits the garbage bin. We have seen seconds of over $250,000 stripped away inside a Chapter 13. The simple criteria are that (i) your house is upside down taking into account just the first mortgage; and (ii) you have steady sufficient income.

Contact Doan Law Firm to see if a mortgage lien strip is in your future.

The information on this bankruptcy attorney/law firm website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, e-mails or other communications should be taken as legal advice for any individual case or situation. The information on this website is not intended to create, and reciept or viewing of this information does no constitute, an attorney-client relationship.

doanlaw.net is an informational website sponsored by Brothers Law Group LLP (dba Doan Law Group), Law Offices of Gregory J. Doan Esq APC, SN Doan APC, Michael G. Doan APC, and Shawn A. Doan APC. Each of the foregoing entities individually owns and operates its respective law practice. Each entity has been designated by the Federal Government as a qualified debt relief agency that helps folks file bankruptcy under the bankruptcy code.
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